IPP
Industry prices change by 0.32% in January and record smallest increase in six months
March 05, 2020 09h00 AM | Last Updated: March 05, 2020 12h01 PM
Industry prices decelerated to 0.32% in January, against those in effect in December last year, due to the fall of beef prices. According to the Producer price Index (IPP), released today by the IBGE (5), that was the sixth month of positive rates, with a cumulative increase of 3.09% in the period. In the last 12 months, inflation in industry hit 6.33%.
Considering mining and quarrying industry alone, there was an increase of 5.52% in January. Manufacturing industry recorded an increase of 0.07% in IPP, the indicator that measures the evolution of the prices of products "at the factory gate", free from taxes and freight, of 24 activities from mining and quarrying and manufacturing industries.
“The result of January is the lowest in the last six months. The reason was the decrease of food industry prices (-2.01%), mainly of products made of beef, pork and poultry, which pushed industry inflation in the previous months due to the growing demand from China. That demand has decreased”, says the IPP manager, Manuel Campos Souza Neto.
On the other hand, prices of mining and quarrying industry rose 5.52%, pushed by iron ore. That was the biggest increase among the 18 activities that recorded price rises in January. Other highlights were basic metals (3.11%) and rubber and plastic (2.01%). In terms of influence, food products was the main product (-0.47 percentage points), followed by basic metals (0.18 percentage points) and motor vehicles (0.10 percentage points).
“In the last 12 months, the prices of petroleum products changed by 19.81%. Food industry recorded a change of 9.01%, and mining and quarrying industry, of 29.71%, leading to a cumulative average of 6.33%”, Mr. Campos added.
Among the major economic categories, there were increases of 1.26% in capital goods and of 1.33% in intermediate goods in January. Prices of consumer goods fell 1.24%, with a 0.56% change recorded by durable consumer goods and a decrease of 1.61% recorded by semi and non-durable consumer goods.
